Morgan Stanley analyst Terence Flynn maintained a Hold rating on Amgen (AMGN – Research Report) yesterday and set a price target of $330.00.
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Terence Flynn’s rating is based on a combination of factors, including the recent positive results from Amgen’s Phase 3 FORTITUDE-101 trial for bemarituzumab (Bema). While the trial showed a significant improvement in overall survival for patients with FGFR2b+ gastric cancer, the market opportunity is considered limited due to the relatively small addressable population. The FGFR2b+ subtype represents only about 30% of gastric cancer cases, translating to an addressable population of 7,000 in the US and 250,000 worldwide.
Despite the promising trial results, the potential sales impact of Bema is projected to be modest, with risk-adjusted sales estimated at $461 million by 2030, which is approximately 1% of Amgen’s total sales. Additionally, there are concerns about the safety profile of Bema, as the trial reported higher frequency and severity of ocular adverse events compared to previous studies. These factors contribute to Flynn’s Hold rating, suggesting that while there is some positive momentum, the overall impact on Amgen’s financial performance may be limited.
According to TipRanks, Flynn is a 3-star analyst with an average return of 2.5% and a 52.78% success rate. Flynn covers the Healthcare sector, focusing on stocks such as BioNTech SE, Gilead Sciences, and Eli Lilly & Co.
In another report released on June 24, Guggenheim also maintained a Hold rating on the stock with a $288.00 price target.